Yesterday, NBCU's EVP of Sales and Sales Marketing Seth Winter announced that all of this Sunday's Super Bowl on-air and online ad units are now sold out. At $4.4-$4.5 million for on-air spots, these are the most expensive Super Bowl ads ever. Winter also reiterated something he said a few weeks ago: he believes a 30-second Super Bowl ad really provides a $10 million value "because of all the incremental exposure that the creative receives on all the different social media platforms like YouTube or publicity."
The comment resonated with me, because way back in 2007, in "On the Road to the $10 Million Super Bowl Ad," I suggested that eventually Super Bowl would in fact reach this level (note that NBC isn't selling the ads for $10 million - yet. It's only saying that's their value).
This has been a significant year for TV Everywhere growth and no question, live sports has been the biggest driver. At the recent VideoSchmooze, one of our sessions explored how sports is playing a pivotal role in introducing TV Everywhere to millions of viewers and in turn, is creating a path to using TVE for entertainment programming as well.
The session featured Brian Dutt (FreeWheel), Vito Forlenza (Comcast), Dina Juliano (NBCU) and Clark Pierce (FOX Sports), with Colin Dixon (nScreenMedia) moderating.
The full session video is included below.
YuMe has released results of a 500-person online survey about Super Bowl XLIX viewing intentions, finding surprisingly strong interest in watching the game via streaming. 37% of those surveyed said they plan to watch via a connected TV device, with 87% watching on TV, thereby implying lots of dual screen watching is in store.
41% of respondents said it was important to watch the game on multiple devices, with 75% agreeing there's less chance of missing out when using multiple devices.
Clearleap has announced a cloud-based multiscreen sports solution to support live-streamed games, near real-time highlights/clips and personalized playlists. Clearleap's Sports and Live TV Solution targets sports-oriented TV networks which recognize that today's fans demand always-on access across their multiple devices.
The new Clearleap solution enables networks to ingest, process and deliver live and on-demand sports streams, supported by a network operations center aiming to provide 99.999% uptime. Obviously when it comes to live sports any hiccup in a live-stream that could risk missing the big play would be catastrophic. Clearleap provides a dashboard to manage and monitor real-time analytics of video delivery.
I'm pleased to present the 250th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia.
(Programming note - While we were quite tempted to add our voices to this week's raging net neutrality debate, we decided to pass, on the assumption that listeners are likely fatigued. But if you'd like us to do an episode on net neutrality, please let us know.)
Instead, we start this week with FreeWheel's newly-released Q3 '14 Video Monetization Report (VMR), and specifically how sports are playing a big role driving TV Everywhere's adoption. As Colin wrote, a whopping 82% of live online video ad views are now tied to sports content. Live video ads themselves grew by 214% year-over-year and now account for 21% of all video ad views for programmers.
This is critical because it's increasingly clear that sports are going to play a pivotal role in broader TVE adoption. Colin will be moderating a session at VideoSchmooze on Dec. 4th that will dive deep into the subject with FreeWheel's Brian Dutt, who oversees the VMR, along with executives from Comcast, NBCU and Fox Sports. The session is a key part of our jam-packed VideoSchmooze program.
We then discuss Yahoo's acquisition of video ad platform BrightRoll for $640 million cash. As I wrote earlier this week, the deal is the latest in a string of video ad tech acquisitions, fueled by the market's growing acknowledgement of online/mobile video advertising's growing importance. We also dig into what the deal means for Yahoo.
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Dish Network has been very public about its interest in launching an over-the-top pay-TV service (a virtual pay-TV operator or "vPop") this year. But on Dish's Q3 '14 earnings call yesterday, company chairman Charlie Ergen provided an update on its progress, tamping down short-term expectations for the vPop service and its likely market impact. More importantly, as I explain below, Ergen's comments highlight some of the vPop's conflicting goals and significant challenges.
Following are Ergen's initial comments on the call about the vPop service (from the transcript at Seeking Alpha), in which he speaks candidly about the complexity and uncertainty involved with the launch:
Sporting News Media, which operates a large sports online video syndication network, has launched a new research service called "Sporting Views," which will provide insights about how online viewers engage with sports-related video.
The data is based on Sporting News Media's SN ePlayer network which syndicates video highlights from major leagues and rights-holders to over 350 publishers' sites, generating over 20 million unique visitors/mo and 300 million streams/mo. The SN ePlayer network has been comScore's top-ranked online video sports property for 9 of the last 12 months.
In the inaugural report, Sporting Views found that viewing of sports content on local publishers sites is quite diffused, actually drawing big out-of-market audiences. In ten of the largest U.S. markets, 62.1% of viewers who watch sports video on local publishers' sites were from outside that market. Dallas (72.7%), LA (71.3%), New York (70.9%) and Miami (70.3%) led in terms of percentage of viewers from outside their markets.
Topics: Sporting News
Big Ten Network (BTN) is the latest example of how sports fans are benefiting from online video's rise - gaining more convenient access, more content choices and additional packaging options.
BTN rolled out BTN2Go, its TV Everywhere service, four years ago, which is currently available to over 90% of its 60 million+ subscribers. Now, it is using BTN2Go as its platform brand and has introduced BTN Plus, a "hybrid TV Everywhere" service, which includes non-televised games and events from Big Ten schools and is available exclusively online and on connected devices. BTN Plus takes the place of previously fragmented efforts by individual schools under the CBSSports.com brand.
Late yesterday, the NFL announced it renewed its "Sunday Ticket" deal with DirecTV for a reported 8 years at $1.5 billion per year, a 50% increase over their prior deal. Going back about a year, there were rampant rumors that the Sunday Ticket package could go to an OTT player, with Google being the name most often mentioned.
In reality, though, there was virtually no chance Sunday Ticket was going to go to OTT, and so the DirecTV renewal comes as no surprise. As I wrote over a year ago, there were at least 5 big challenges to a Google-NFL deal in particular. These essentially boil down to a combination of online video not being mature enough yet to exclusively handle marquee sports broadcasts and the incumbent TV ecosystem desperately needing to retain marquee sports broadcasts like Sunday Ticket.
After a 2 week hiatus while I was traveling in France, nScreenMedia's Colin Dixon and I are back with the 240th edition of our weekly podcast.
The NFL season is now officially underway and with the launch of the NFL Now app, the league is promising to deliver an unprecedented fan experience. Though it's still quite early, Colin and I discuss why NFL Now looks like a very smart move. We're especially impressed with how the NFL is threading the needle between preserving the value in its multi-billion dollar broadcast/cable TV deals while aggressively pursuing online/mobile opportunities. However, for watching live games online, we also note how convoluted the TV Everywhere experience will be this season.
Before we get to the NFL, Colin shares insights on a new report from Ericsson Consumer Lab, which found that OTT providers are surpassing pay-TV providers in customer satisfaction. Colin compares the data for four criteria - price, quality, mobility and content. I think the report is directionally correct, but question how valid it is to compare OTT services that cost around $8/month with pay-TV that can cost 10x this amount. It's worth noting another key takeaway from the report, which is that almost as many people now watch streaming video per week (75%), as watch scheduled broadcast TV (77%).
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September is here and that means summer 2014 is in the rear-view mirror. For online video and the broader video ecosystem, it was another busy few months, as viewers around the world continue to shift their consumption patterns, with many companies scrambling to keep pace. Below I've distilled my list of the 10 biggest online video stories of the summer - read on and let me know if I've missed something!
TV Everywhere proponents will find a lot to like in FreeWheel's newly released Q2 2014 Video Monetization Report. Ad views on authenticated on demand long-form plus live-streaming content grew 619% vs. Q2 '13. Fully 38% of these content formats' ad views now come via authentication, up from just 8% a year ago.
Live content was up 201% year-over-year, with 81% of live ad views attributable to sports. Q2 included marquee events like World Cup, NBA and NHL playoffs. The share of live content's ad views vs. total ad views increased from 8.1% in Q2 '13 to 18.3% in Q2 '14.
I'm pleased to present the 235th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia.
First up this week, Colin recaps how well the recently wrapped-up World Cup did with live-streaming. As Colin notes, the final game delivered 1.8 million concurrent live viewers. Also interesting was how mainstream streaming mid-day games seemed to become. Unlike March Madness games, which have always been streamed in the workplace somewhat surreptitiously, World Cup streaming seemed completely acceptable.
Continuing our sports theme, we then turn to a WSJ article this week which revealed that the NBA is seeking to double the approximately $930 million per year in TV rights fees it receives from Disney/ESPN and Time Warner/Turner when these deals expire after the 2015/2016 season.
If the NBA were to succeed, and gain $2 billion or so in fees, that would translate into around $20 per year for each of the approximately 100 million U.S. pay-TV subscribers (even more when you factor in the pay-TV operator's retail margin).
The dirty little secret of these super-expensive sports deals is that ALL subscribers pay - whether you're a fan or not - meaning the "sports tax" on non-fans is getting bigger all the time. With escalating pay-TV bills, the big question is whether non-fans will become heavier cord-nevers and cord-cutters.
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Click here to listen to the podcast (20 minutes, 5 seconds)
I'm pleased to present the 232nd edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia.
The World Cup is in full swing and as many predicted beforehand, live-streaming is a crucial part of how fans are following the action. Colin notes that Akamai (which is responsible for a lot of the live-streaming globally), said that back in the 2010 World Cup, the peak bandwidth used was 1.4 terabits/second. Akamai was expecting that level to quadruple this year.
Sure enough, in current group play, the Brazil-Mexico game already almost reached that target, registering 4.59 Tbps. That level will surely be exceeded as play moves on to the knockout stage (in which Colin's beloved England is unlikely to be participating).
A key part of the World Cup's streaming success is due to the proliferation of mobile viewing devices, and we next discuss data Ooyala released this week revealing that mobile's share of online views increased from 3.4% in Q1 '12 to 21.5% in Q1 '14. Live-streaming in particular was a big-driver, and that's mainly sports. We dig into the details.
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The Internet has been a boon to sports fans, with the new "Know the Fan" report from Sporting News Media, Kantar Media Sports and SportBusiness Group revealing that approximately 2/3 of U.S. sports fans follow sports online. In particular, 38% of fans who watch sports video online cited live-streaming of games/events as their top activity (up from 33% in 2013), followed by short highlight clips (31%) and videos of sports news (27%).
Topics: Sporting News
Among the apps launched this week on Amazon's new Fire TV was the ACC Digital Network, a joint venture between Silver Chalice and Raycom Sports. ACC Digital Network is the Atlantic Coast Conference's multimedia destination featuring live streaming and other original programming. In addition to being online, it also recently launched on Apple TV.
To get up and running quickly on Fire TV, SportsLabs, a division of Silver Chalice, turned to 1 Mainstream, a platform for deploying HD video services on a variety of connected TV and mobile devices that launched last December. I caught up with Rajeev Raman, 1 Mainstream's CEO (and previously head of product at Roku), to learn more about how the company is helping content providers quickly build and deploy apps.
USA Today Sports Digital Media and NeuLion have announced a strategic partnership for video syndication and original productions. The deal includes NeuLion College, a network of 170 NCAA sports properties and USA Today Sports' extensive collection of digital sports sites plus Gannett's 120+ local media properties. Dave Morgan, president of USA Today Sports Media Group and Chris Wagner, EVP of NeuLion filled me in on the deal yesterday.
The streaming industry is currently undergoing incredibly exciting and important changes that are affecting the way viewers consume content. As 'appointment TV' continues to fade, the fact is live events and sports are some of the only real appointments consumers are keeping. These live events are the driving force shaping the streaming industry; giving way to a new era of live interactive digital viewing and monetization of content with added benefits of increased time spent online, more user analytics and ultimately revenue growth.
FreeWheel has released its Q4 '13 video monetization report, revealing among things, that ads viewed in live streaming jumped 148% vs. Q4 '12, and now account for nearly 10% of ads viewed in online video streams served by pay-TV operators and TV networks. Related, ad views in authenticated, TV Everywhere content rose 268% vs. Q4 '12. Overall, ad views were up 30% year-over-year. Brian Dutt, who manages Advisory Services at FreeWheel and oversaw the report, shared more detail behind these and other data being released.
Here's one measure of how popular live streaming is becoming: according to Akamai, yesterday's concurrent men's quarter-final hockey games from Sochi drove 2.5 terabits per second of peak usage on its network, almost 3 times the peak usage of 873 gigabits per second that Akamai saw during the men's 100 meter final, which Usain Bolt won, during the London 2012 games. It's also 56% higher than the 1.6 Tbps peak Akamai delivered during the USA-Russia hockey game last Saturday (which NBC separately said attracted 600K online viewers via its "Live Extra" app). Update - NBC says yesterday's USA-Czech Republic game alone delivered almost 800K online viewers, a new record for "Live Extra."